David Morgenthaler facts for kids
Quick facts for kids
David Morgenthaler
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David Morgenthaler in 2013
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| Born |
David Turner Morgenthaler
August 5, 1919 |
| Died | June 17, 2016 (aged 96) |
| Alma mater | Massachusetts Institute of Technology |
| Occupation | Venture capitalist |
| Known for | Founder of Morgenthaler Ventures |
| Spouse(s) | Lindsay Jordan Morgenthaler |
| Children | 4 |
David Turner Morgenthaler (born August 5, 1919 – died June 17, 2016) was an American businessman. He is best known for starting his own company, Morgenthaler Ventures, which invested in many new businesses.
He also played a big part in changing important laws in the U.S. For example, he helped lower the tax on investment profits in 1978. He also helped make it easier for retirement funds to invest in new, growing companies in 1979.
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Who Was David Morgenthaler?
David Morgenthaler was born in Chester, South Carolina, on August 5, 1919. He was raised by his aunt. Sadly, she passed away when he was twelve years old.
His Education and Early Life
David went to the Massachusetts Institute of Technology (MIT). He earned two degrees in Mechanical engineering in 1941. While at MIT, he was very active. He was the Vice President, and later President, of his Senior Class. He also led the Sigma Nu fraternity and was Captain of the MIT Swimming Team.
Military Service During World War II
The day after the attack on Pearl Harbor in 1941, David joined the United States Army Corps of Engineers. He started as a Second Lieutenant. He was promoted to Captain and led a company building airfields in North Africa. Later, in Italy, he was a Chief Technical Officer. He served in the United States Army Reserve until he was discharged.
Family Life
David Morgenthaler married Lindsay Jordan in 1945. They had four children together. He passed away on June 17, 2016, at the age of 96.
David Morgenthaler's Business Career
After his time in the military, David Morgenthaler joined a team to start a new company. He then worked for several other new businesses. He helped build Delavan Manufacturing Company into a top maker of jet engine fuel nozzles.
Starting in Venture Capital
Later, he was recruited by J.H. Whitney & Company. This was one of the first venture capital firms in America. Venture capital means investing money in new companies that have a lot of potential to grow. David became the president and CEO of one of their investments, Foseco, Inc. He made it the biggest maker of special chemicals for factories in the U.S.
Founding Morgenthaler Ventures
In 1968, David started his own company, Morgenthaler Associates. This later became Morgenthaler Ventures. He was one of the few people to start a venture capital firm using his own money. Over 42 years, his company invested in over 300 businesses. These companies were in areas like computer technology and life sciences.
Leadership Roles
During his career, David Morgenthaler was a director, president, or chairman for more than 30 companies. These ranged from small startups to large international businesses. He worked in many different industries.
Changing Laws for Business
David was also a founding director of the National Venture Capital Association (NVCA). He worked with the United States Congress to make conditions better for venture capital and new businesses.
- Lowering Taxes: Under his leadership, the capital gains tax was lowered. This is a tax on the profit you make when you sell an investment. It went from 49% down to 28% in 1978.
- Helping Retirement Funds: He also helped change a rule called the Prudent man rule for ERISA. This change allowed pension funds (money saved for retirement) to invest in venture capital. This helped more new companies get the money they needed to grow.
Other Important Activities
David Morgenthaler was involved in many other groups and causes.
Fighting Discrimination
He was a leader in the Young Presidents' Organization (YPO). He strongly opposed discrimination. He helped admit the first Jewish member to the Cleveland Chapter. He also helped admit the first African-American member to YPO nationally.
Supporting Education and Research
David was a member of the President's Circle and the Science, Technology, and Economic Policy (STEP) Board of the National Academies. He also served on important committees at:
- Cleveland Clinic
- MIT
- Carnegie Mellon University
- Case Western Reserve University
- Hoover Institution
Giving Back to the Community
David Morgenthaler was also very generous. He helped fund many important programs:
- A professorship for entrepreneurship at Carnegie Mellon University.
- The Entrepreneurship Center at MIT.
- Fellowship programs at the Cleveland Clinic and Stanford University.
- The Einstein Society of the National Academies.
At Stanford University, a special award was named in his honor. It's called the David T. Morgenthaler Grand Prize for the BASES $50K Entrepreneurs' Challenge.
Awards and Recognition
David Morgenthaler received many awards for his work. These include:
- The first Lifetime Achievement Award from the NVCA in 1996.
- The Private Equity Lifetime Achievement Award.
- The Private Equity Analyst's Hall of Fame.
- The Association for Corporate Growth Lifetime Achievement Award.
- The Harvard Business School "Entrepreneur of the Year" Award.
- One of the first Honorary Fellows of the Kauffman Foundation.
- The first Lifetime Achievement Award of the International Business Forum (IBF).
